Biblioteca Digital de VanguardiaTrade openness and foreign direct investment: the impact of free trade agreements in Latin America
This paper sheds light on the performance of Latin American governments in attracting foreign direct investment (FDI) through trade policies, specifically by signing free trade agreements with other countries. The relationship between FDI and trade for Latin America has previously been analyzed, but...
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| Formato: | info:eu-repo/semantics/article |
| Lenguaje: | Español |
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Universidad del Pacífico
2006
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| Acceso en línea: | https://revistas.up.edu.pe/index.php/apuntes/article/view/559 http://biblioteca-repositorio.clacso.edu.ar/handle/CLACSO/52890 |
| _version_ | 1782338399114362880 |
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| author | Ponce Ugolini, Aldo Fernando |
| author_facet | Ponce Ugolini, Aldo Fernando |
| author_sort | Ponce Ugolini, Aldo Fernando |
| collection | Repositorio |
| description | This paper sheds light on the performance of Latin American governments in attracting foreign direct investment (FDI) through trade policies, specifically by signing free trade agreements with other countries. The relationship between FDI and trade for Latin America has previously been analyzed, but the relationship between the degree of «openness» (imports plus exports divided by the domestic product) and FDI has not been conclusive. At the same time, the effect of specific trade policies on FDI flows has not been extensively studied. Some state trade policies could produce a significant impact in attracting FDI. Specifically, through the implementation of a number of free trade agreements, several Latin American countries have been able to attract greater flows of foreign direct investment. The implementation of such free trade agreements formed part of a more general scheme of economic reforms launched by Latin American countries since the mid-1980s. The goals of these reforms were to adjust the region’s economies and improve their competitiveness by liberalizing trade, privatizing, and deregulating their markets. Those countries that signed more free trade agreements – or signed them with the largest economies in the world – increased their ability to attract FDI. I test the impact of this policy on the behavior of FDI flows through a panel data model for 17 Latin American countries for the period between 1985 and 2003. |
| format | info:eu-repo/semantics/article |
| id | clacso-CLACSO52890 |
| institution | CLACSO, Repositorio Digital |
| language | Español |
| publishDate | 2006 |
| publisher | Universidad del Pacífico |
| record_format | greenstone |
| spelling | clacso-CLACSO528902022-03-17T18:48:02Z Trade openness and foreign direct investment: the impact of free trade agreements in Latin America Apertura comercial e inversión directa extranjera: el impacto de los tratados de libre comercio en América Latina Ponce Ugolini, Aldo Fernando This paper sheds light on the performance of Latin American governments in attracting foreign direct investment (FDI) through trade policies, specifically by signing free trade agreements with other countries. The relationship between FDI and trade for Latin America has previously been analyzed, but the relationship between the degree of «openness» (imports plus exports divided by the domestic product) and FDI has not been conclusive. At the same time, the effect of specific trade policies on FDI flows has not been extensively studied. Some state trade policies could produce a significant impact in attracting FDI. Specifically, through the implementation of a number of free trade agreements, several Latin American countries have been able to attract greater flows of foreign direct investment. The implementation of such free trade agreements formed part of a more general scheme of economic reforms launched by Latin American countries since the mid-1980s. The goals of these reforms were to adjust the region’s economies and improve their competitiveness by liberalizing trade, privatizing, and deregulating their markets. Those countries that signed more free trade agreements – or signed them with the largest economies in the world – increased their ability to attract FDI. I test the impact of this policy on the behavior of FDI flows through a panel data model for 17 Latin American countries for the period between 1985 and 2003. Este trabajo evalúa la efectividad de los gobiernos latinoamericanos para atraer la inversión extranjera directa (IED) a través de la política comercial, específicamente por medio de la firma de acuerdos de libre comercio con otros países. En estudios anteriores, la relación entre el grado de «apertura» (importaciones más exportaciones divididas por el producto doméstico) y la IED no ha sido concluyente. Al mismo tiempo, el efecto de instrumentos específicos de política comercial sobre los flujos de la IED no ha sido cuidadosamente estudiado. Algunas políticas comerciales promovidas por el Estado podrían producir un impacto significativo en los flujos de la IED. Específicamente a través de la implementación de acuerdos de libre comercio, varios países latinoamericanos han sido capaces de incrementar los flujos de inversión extranjera directa. La puesta en práctica de estos acuerdos de libre comercio formó parte de un plan más general de reformas económicas implementadas en la mayoría de los países latinoamericanos desde mediados de la década de 1980. Los objetivos de estas reformas fueron la estabilización de sus economías y la mejora de sus niveles de competitividad mediante la liberalización del comercio, las privatizaciones, la desregulación de sus mercados, etcétera. Aquellos países que firmaron más acuerdos de libre comercio –y especialmente los que los implementaron con las economías más grandes en el mundo– aumentaron sus flujos de IED. En este artículo analizo el impacto de esta política comercial sobre el comportamiento de los flujos de IED a través de un modelo panel data (con estimadores del tipo «feasible generalized least squares»), el cual incluye diecisiete países latinoamericanos y el período que comprende de 1985 al 2003. 2006-04-08 2022-03-17T18:48:02Z 2022-03-17T18:48:02Z info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion https://revistas.up.edu.pe/index.php/apuntes/article/view/559 10.21678/apuntes.58/59.559 http://biblioteca-repositorio.clacso.edu.ar/handle/CLACSO/52890 spa https://revistas.up.edu.pe/index.php/apuntes/article/view/559/561 Derechos de autor 2017 Apuntes http://creativecommons.org/licenses/by/4.0 application/pdf Universidad del Pacífico Apuntes. Social Sciences Journal; Apuntes 58 - 59; 139-159 Apuntes. Revista de ciencias sociales; Apuntes 58 - 59; 139-159 2223-1757 0252-1865 |
| spellingShingle | Ponce Ugolini, Aldo Fernando Trade openness and foreign direct investment: the impact of free trade agreements in Latin America |
| title | Trade openness and foreign direct investment: the impact of free trade agreements in Latin America |
| title_full | Trade openness and foreign direct investment: the impact of free trade agreements in Latin America |
| title_fullStr | Trade openness and foreign direct investment: the impact of free trade agreements in Latin America |
| title_full_unstemmed | Trade openness and foreign direct investment: the impact of free trade agreements in Latin America |
| title_short | Trade openness and foreign direct investment: the impact of free trade agreements in Latin America |
| title_sort | trade openness and foreign direct investment: the impact of free trade agreements in latin america |
| url | https://revistas.up.edu.pe/index.php/apuntes/article/view/559 http://biblioteca-repositorio.clacso.edu.ar/handle/CLACSO/52890 |